Effects of E-business on business processes

Effects of E-business Page 1 Running Head: EFFECTS OF E-BUSINESS ON BUSINESS PROCESSES



Effects of e-business on Company’s business processes Student Name August 9, 2009 University of Phoenix



Effects of E-business Page 2 The Effects of E-business on Company’s business processes Background of Company Company Corporation manufactures fluid power systems, electromechanical controls, and related components worldwide. The company’s Industrial segment offers connectors; hydraulic components and systems for the builders and users of industrial and mobile machinery and equipment; pneumatic and electromechanical components and systems; static and dynamic sealing devices; filters, systems, and instruments to monitor and remove contaminants from fuel, air, oil, water, and other fluids and gases; and critical flow components for process instrumentation, healthcare, and ultra-high-purity applications. This segment sells its products primarily to original equipment manufacturers (OEMs) and replacement markets in various manufacturing and processing industries. Its Aerospace segment provides hydraulic, fuel, and pneumatic systems and components used for commercial and military airframe and engine programs. It also manufactures a range of fluid conveyance systems, fluid metering, delivery and atomization devices, and inert gas generating systems, as well as connectors, hoses, fittings, tube fittings, and quick disconnects, which control, transmit, and contain fluid for aircraft applications. This segment markets its products primarily to OEMs in the commercial, military, and general aviation markets, as well as to end users for maintenance, repair, and overhaul. The company’s Climate and Industrial Controls segment offers systems and components for use primarily in the mobile and stationary refrigeration, and air conditioning industry; and in fluid control applications in a range of industries, including processing, fuel dispensing, beverage dispensing, and mobile emissions. This segment sells its products to



Effects of E-business Page 3 OEMs and their replacement markets. It markets its products directly, as well as through independent distributors, wholesalers, sales representatives, and builder/dealers. The company is founded in 1900 and is headquartered in City, State. Effects of e-business on business processes E-business allows Company to give their customers and distributors direct access to their catalogues and inventory. By allowing their customers and distributors into their databases, Company is able to reduce the time and work required to process orders and enquiries. Ebusiness allows Company and its customers and distributors to eliminate the need for lengthy phone calls. This also means that employees who would have been talking to customers on the telephone were available for other tasks, and customers who interfaced with Company via the internet had immediate answers from the database. The increased efficiencies allows Company to shorten their logistics processes by short accurate referral of inquiries to the correct source, and automatic answering of requests for parts and direct despatch, delivery and billing. Customers can check order status on-line and customize individual parts and components on-line, which further demonstrates the reduction in time spent unproductively on the phone, confirming and discussing orders. Through the company’s e-commerce system, the Company’s engineers can now collaborate with customers online, in real time, they can if necessary propose changes to components or systems and contribute to the design process without leaving the office and incurring travel costs. E-business has made the company’s billing process and their collection process more effective, due to the automated nature of the transactions, while also eliminating many traditional points of error, by using checking and correction software in the process.



Effects of E-business Page 4 Customers can be billed in their home currency automatically and can also pay online and in so doing guarantee faster more efficient deliveries. The use of e-business has reduced the level of customer frustration, by reducing long waits on call centre lines and errors caused by language and communication medium interference. Customers can interact with the company via the web interfaces in the several choices of language, without any adverse effect on the quality of the communication. The customer experiences a seamless transaction, without ever having to consider language or translation. Advantages of using or not using the Internet for business activities The internet has made it possible for Supply Management Systems to be implemented both forward and backward. This has enabled suppliers and customers to integrate their systems online, and this means better inventory management, account management, order assembly and delivery. Enterprise management Programs now have the ability to function across borders, over water – any distance. They also have the ability to work in multiple currencies and multiple legal environments, and report back to the home office in a single currency and a single language if necessary. The internet allows businesses to diversify their operations and to be able to track their various business activities in real-time. It has also allows businesses to trade 24 hours a day, seven days a week, without employing additional staff to man 24 hour call centres to receive enquiries and orders. Language barriers have by the use of web based translators and multi language websites become much smaller and easier to manage. Customer relationship management has benefited from the internet, as customers now have more control over their purchases, their on-line statements, are able to track their



Effects of E-business Page 5 deliveries and plan their own work schedules according to reliable information received from the supplier’s e-commerce systems. Customer relationship management systems help marketing professionals accomplish direct marketing campaigns by automating such tasks as qualifying leads for targeted marketing, and scheduling and tracking direct marketing mailing. – Organisation wide – where ever the organisation’s business units may be based. Customer spending can be analyzed online, and the customer experience is enhanced, because they can complain online and in some cases resolve the complaint online. Balanced scorecard can now be implemented throughout multi country, multi cultural organizations, by the use of intelligent technology to overcome language and cultural barriers, which previously made multinational businesses less competitive in foreign markets where language based issues required extensive attention. The need for human to human communication across multiple time zones is also significantly reduced, and this reduces delays caused by overlapping non-business hours, which in a conventional setting reduces the business time window between different time zones to anything from one to two hours per day, in some extremes where there are 7 to 12 hour time zone differences. By interacting on line across time zones, there is no reduced operational window and business can continue unabated around the clock. The organisation is able to send orders electronically to their manufacturing departments that may be thousands of miles away, and systems can receive these orders electronically, and issue bills of materials automatically to where they are needed for despatch of these materials. Unnecessary duplication of work can be avoided almost completely, and the savings realised from that avoided duplication can go into additional product development or even additional marketing. Any company, who operates a local business, can through use of the internet and web based e-commerce, marketing and advertising become an international company. Properly managed and with the appropriate



Effects of E-business Page 6 security and safeguards, companies will be able to leverage growth from e-commerce and web based trade.